COMMERCIAL REAL ESTATE : Brokers Skeptical of Main St. Concourse Project in Santa Ana

While the $500-million Main Street Concourse project would change Santa Ana’s skyline, real estate brokers doubt that it will fly.

The city gave its OK this week to the eagerly awaited project, which includes what would be the county’s tallest office building.

The first phase, to include a 32-story office building, retail space, a health club, a live-performance theater and a cinema, along with 64 townhomes, is to start construction in 1994 and be completed in 1996, according to its developer, Tokyo-based Shimizu Corp., which has an office in Los Angeles. Newport Beach-based Orient Corp. of America owns the 17 acres of land where the project is to be built.

“It makes absolutely no sense whatsoever,” said one real estate consultant, who requested anonymity.

Recent studies show that Japanese lenders have virtually pulled out of Orange County’s real estate market, and some consultants are not seeing a need for new office construction for another five years.

“From a micro-level, we think there is substantial potential, especially in two or three years,” said Michael A. Cutri, development manager for Shimizu America. He said that many of the county’s office districts are aging and that there is a need for new, top-of-the-line space. He also said that the retail, entertainment and residential parts of the project then would draw from the office space tenants. Phase II would include 216 high-rise condos, more offices and a hotel “along the lines of a Marriott or a Sheraton,” Cutri said. That would be completed around the year 2000.

As for financing, “we’re exploring options,” he said, adding that the developer’s credit worthiness would help overcome lending obstacles.